UBS initiated coverage on Applied Digital (APLD) with a Buy rating and a $38 price target.
The firm highlights the company's strategic pivot from bitcoin mining to AI-focused data center development.
Analysts point to Applied Digital's demonstrated ability to secure leases and deliver AI capacity at scale.
UBS forecasts that massive infrastructure demand will triple global data center capacity needs in the coming years.
The bank expects improved economics through upcoming lease signings and tenant expansion options.